July 8, 1999

Council Approves $32.8 Million Budget.
Amesbury News

The Municipal Council last week approved a $32.8 million budget, despite Councilor-at-Large Thomas Iacobucci's concerns that the town is funding too many projects.

Last year's budget totaled $33.4 million. The current figure (which doesn't include state assessments, which are expect to increase the budget) will represent an increase of 3.5 percent for the town's portion of the budget and 8.13 percent for the schools' portion over last year.

"Last year's budget included state assessments, but not regional schools," Chief Financial Officer Don Young said. "This year, it's the other way around."

State assessments are items that the state charges the town for, such as use of the Merrimack Valley Transit Authority (buses), health insurance for retired town employees and Massachusetts Bay Transit Authority (trains).

"(The Municipal Council) listed those state assessments in the budget, but they didn't really have to be there," Iacobucci explained, adding that the town still has to watch out for those assessments. "We should be asking questions as to why certain state assessments are listed."

The biggest differences in this year's budget are a 3 percent increase in salary over last year and outstanding debt.

The fact that Amesbury is 35th in statewide debt, according to the state Division of Local Services, has not helped the town either. Iacobucci complained that the debt is high, yet the town continues to add new projects.

"If we approve things now, the mayor bonds for 15 to 20 years for a project. We have to pay for those bonds in the budget for the next 15 to 20 years," Iacobucci said.

One such recent project is the Landry Stadium renovations, which the councilors voted to bond last week.

"Last year we bonded $1 million for sewer, $1 million for water, and now we're asked to bond for $899,000 to the Landry Stadium. What effect will this have on the town's tax rate?" Iacobucci asked Young.

Young said the tax burden of the bond was anticipated and already in the tax rate. The town and schools increases are expected to be balanced out by new growth in additional taxable property and state aid and are not expected to raise the taxes.

In fact, Young said he was expecting a 75-cent-per-thousand-dollar tax decrease.

Of the tax rate, the bond would be represented by 10 to 15 cents per thousand that is already in place. This will be reduced by any additional money left over from the $19 million middle-school renovations project, Young said.

The $899,000 will consist mostly of leftover middle school project money and donations to the middle school. Young said the additional money will not be borrowed until needed.

Councilor Leonard W. Johnson said repairs to the stadium have been needed for some time.

"This is something that voters voted on a referendum for. The (council) vote reflects what the town wants, and that is to repair the stadium as a war memorial," Johnson said after the meeting.

The target date to start repairs is late fall.

Councilors also accepted the Woodsom Farm report, but will vote on its contents at the Aug. 3 meeting.